Podcasts about 72t

In this episode we answer emails from Jeff, Jenzo and Sam.  We discuss spending money on relationships, a 72(t) situation, what to do with an unused Coverdell, GDE (again), a nice risk parity write-up and some random musings about the history of free speech and communications technologies.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional links:Jenzo's GDE Backtest:  testfol.io/?s=0SLNjC7As4bSam's Most Excellent Risk Parity Explication Blog Post:  15 Uncorrelated Assets | SSiSSam's Most Excellent Bill Of Rights Blog Post:  Boxed In | SSiSBreathless Unedited AI-Bot Summary:When markets tumble and headlines scream doom, properly diversified portfolios reveal their quiet strength. This episode showcases exactly that phenomenon - while small cap value has plummeted 15.58% and the S&P 500 has shed 5.74% year-to-date, gold has soared a remarkable 25.87%, creating a balancing effect that keeps risk parity portfolios remarkably stable.We dive into listener Jeff's retirement strategy, examining his use of 72T distributions and exploring whether his recent RV purchase makes financial sense. The answer turns out to be more about relationships than raw numbers. Research shows expenditures that facilitate meaningful connections tend to yield the greatest happiness returns - a powerful framework for evaluating major purchases in retirement.The emerging world of composite leveraged ETFs takes center stage as we examine GDE, which combines S&P 500 exposure with gold allocation at 1.8x leverage. While innovative funds like these package risk parity principles into convenient solutions, they represent a tradeoff between simplicity and control. We explore whether these instruments belong in a sophisticated asset allocation strategy or if traditional single-asset funds still offer superior flexibility.For investors fascinated by portfolio design theory, we tackle the question of just how many truly uncorrelated assets one needs. While hedge funds and endowments might pursue 15+ distinct asset classes, diminishing returns suggest a more practical approach for individual investors. The mathematical reality shows the incremental benefit of adding that 11th or 12th asset pales in comparison to the impact of moving from one or two assets to five diverse investments.Our weekly portfolio review reveals the practical power of these principles. Despite market turmoil, most of our sample portfolios remain nearly flat or slightly positive for the year - precisely the stability risk parity promises. Whether you're just beginning your investment journey or fine-tuning an established strategy, this episode offers both theoretical frameworks and practical evidence for building resilient portfolios in uncertain times.Ready to hear more? Subscribe, leave a review, and send your questions to frank@riskparityradio.com.Support the show

Today, Harold provides insights into planning for early retirement and leaving an unfulfilling job. He discusses financial strategies like the 72T and Rule of 55, which can help ensure a smooth transition without incurring penalties.  Harold will also share the potential benefits of tapping into home equity lines of credit for supplemental income. He emphasizes the importance of having a well-structured financial plan in times of economic uncertainty.  Join us for practical advice to prepare for an early retirement and a stable financial future. Show Highlights: What is the market situation for investments right now? [05:17] Why are companies sandbagging their guidance? [06:38] The importance of studying trade history and economics [08:00] Do you know about the fear and greed index? [09:00] Discover the reasons people won't retire early [10:51] This is how 72T can help you in retirement planning [11:46] Learn about the limitations of the Rule of 55 [14:07] Find out when to tap into home equity lines of credit [16:07]

In this episode of 'Retire with Style', hosts Alex Murguia and Wade Pfau with Jessica Wunder from McLean Asset Management delve into the complexities of early withdrawals from retirement accounts, specifically IRAs and 401(k)s. They discuss the penalties associated with early withdrawals, the Rule of 55, and various exceptions allowing penalty-free access to funds. The conversation highlights the differences between IRAs and 401(k)s, including specific exceptions applicable to each type of account. In this conversation, the speakers discuss the new exceptions introduced by Secure Act 2.0, including emergency withdrawals and disaster recovery relief. They delve into various early withdrawal exceptions, such as those for death, disability, and medical expenses. A significant focus is placed on the 72T approach, which allows for early withdrawals without penalties under specific conditions.    Takeaways The Rule of 55 allows penalty-free withdrawals from 401(k)s after age 55. Public safety employees have unique exceptions for early withdrawals. You can withdraw for medical insurance premiums if unemployed. Educational expenses can be covered by early withdrawals from IRAs. The 72(t) strategy allows for substantially equal periodic payments. There are strict rules governing early withdrawals from retirement accounts. Early withdrawal exceptions include death, disability, and medical expenses. The 72T approach allows for substantially equal payments from retirement accounts. Chapters 00:00 Introduction and Guest Introduction 01:38 Understanding Early Withdrawals from Retirement Accounts 04:02 Exploring the Rule of 55 11:09 Exceptions for IRAs vs. 401(k)s 15:57 Common Exceptions for Early Withdrawals 18:00 New Exceptions in Secure Act 2.0 22:00 Understanding Early Withdrawal Exceptions 30:00 The 72T Approach Explained 35:59 Planning for Retirement Cash Flow Needs   Links Click here to download Retirement Researcher's free resource, “Exception to Early Withdrawal Penalties“: https://retirement-researcher.ontralink.com/tl/476 We're hosting another YouTube LIVE Q&A episode for RWS! Click here to submit your questions: www.retirementresearcher.com/ask Watch this episode on YouTube: https://youtu.be/EzdIgudCkPQ?feature=shared The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/  This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean's free eBook, “Retirement Income Planning”

Lästips om villighet i EKIM:T-26.VII.10 s 622T-1.III.1 s 41T-1.IV.1 s 43T-1.V.5 s 45T-1.VII.5 s 47T-2.VIII.7 s 67T-3.II.6 s 72T-3.V.6 s 76T-4.I.4 s 88T-4.VII.8 s 106Kom med på mejllistan för olika sätt du kan studera EKIM på tillsammans: https://annaaberg.se Mer information: https://www.ekimtillsammans.se Gå med i facebookgruppen: https://www.facebook.com/groups/ekimtillsammans

When planning your retirement journey it is imperative that you fully explore and understand the options available. On this episode of Retirement Answer Man, Shane asks about the best ways to access his retirement accounts early. Taylor Schulte from Define Financial joins me in the listener questions segment to discuss Shane's question by clarifying the rule of 55 and 72(t), the ups and downs of using his fiduciary to prepare Jay's taxes, and how to fund the first 5 years of retirement. Don't miss out on the answers to questions from listeners like you. Tune in to hear if Taylor's response matches my own.  Accept where you are now “We must be willing to give up the life that we planned so as to have the life that is waiting for us.”--Joseph Campbell It is easy to look back with wonder at the plans you had for your life. Even if everything is going well, we've all had life plans that were interrupted by curveballs. While those curveballs can throw us off course, it's important to understand and acknowledge where we are now. Rather than ignoring or avoiding your present situation, accept your situation the way it is.  Radical acceptance is fully accepting things as they are now. Only when you fully accept what your current reality is can you look forward to creating a fantastic life ahead. Recognize where you are starting from so that you can plan to rock retirement.  What is the rule of 55? Shane is currently planning to work until age 55. He would like to use the rule of 55 to access his 401K. The rule of 55 is an IRS provision that allows workers who leave their current job to start taking penalty-free distributions from their current employer's retirement plan upon reaching age 55.  Note that the rule of 55 does not apply to IRA accounts. It is only to be used for 401Ks. So if you think you may want to use the rule of 55, then you'll want to make sure that you don't roll this account over to a Roth IRA.  Although this provision seems cut and dry, there are a couple of things to look out for. First, you'll want to be clear about whether your employer will allow you to use the rule of 55 for your 401K.  Next, you'll need to see whether the employer will allow you to withdraw the funds on a partial basis so that you don't have to entirely deplete the account. Lastly, you should note that the current tax filing rate for the rule of 55 is at 20%. The ins and outs of using 72(t) for qualified accounts Shane's backup plan in case he gets laid off is to use 72(t). Similar to the rule of 55, 72(t) allows workers to gain early access to their 401K or 403B without penalty. Typically 401K contributors cannot access their retirement savings before age 59.5 without penalty. However, the rule of 72(t) allows for 5 equally periodic penalty-free payments. These payments must be made according to the schedule laid out by the IRS. It is essential that the account holder not add or withdraw anything more during this time period.  Using the 72(t) rule is tricky and it is critical that you carefully abide by the IRS's rules. Listen in to hear a tip on what you could do if you only want to access part of the funds in your 401K using rule 72(t). OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [2:01] On radical acceptance in retirement planning LISTENER QUESTIONS WITH TAYLOR SCHULTE [6:40] What should I know before using 72T to fund retirement? [13:25] Jay wonders if there are pitfalls to having his family office fiduciary prepare his taxes [23:49] How to fund the first 5 years of retirement [30:18] Belinda's question on whether to keep term life insurance in retirement TODAY'S SMART SPRINT SEGMENT [37:42] Radically accept one aspect of where you are now Resources Mentioned In This Episode Taylor Schulte - Define Financial Taylor Schulte's Stay Wealthy podcast Rock Retirement Club Roger's YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Roger's Retirement Learning Center  

How To Retire at 55 with a 72T || Retire Early & Avoid Penalties In this podcast, I want to talk about retiring early with a 72T. This podcast will help you understand what retirement looks like under the age of 59 1/2 and how you can retire and use your retirement investments for income without paying a penalty. **Free Retirement Download: The Roadmap to Retirement:**

Many people are concerned about markets and inflation right now, but rather than focusing on this in today's episode, I'll answer your investment strategy questions. I choose to focus on strategy because if you can create a feasible, resilient retirement strategy, you'll be able to weather all kinds of economic uncertainties. Make sure to stick around until the end to hear an interesting interview that may challenge you to rethink your preconceived ideas. You won't want to miss it if you are open to hearing different perspectives.  If you are looking for a fast pass to get your retirement question answered, record an audio question at RogerWhitney.com/askroger. Unfortunately, you won't win retirement I have some bad news for you. You aren't going to win retirement. There is no way you will figure everything out because there is no right answer.  Despite this fact, you will be okay. By intentionally working through your decisions you'll be able to enjoy retirement to its fullest. Not everything will turn out the way you want, but if you work through the decision-making process with the spirit of a scientist, you'll continually improve. When faced with the results of a poor decision, take time to dissect what went wrong so that you will be able to improve your decision-making the next time around.  Learning from your mistakes instead of stressing over them will help you improve your decision-making process so that you'll achieve better results in the future. How to account for uncertainty in retirement? When creating a retirement plan, any room for error is scary. Even a 1% uncertainty can be unsettling. So what kind of market returns should one anticipate when using retirement calculators? The problem with retirement calculators is that you can't believe the calculator. None of the scenarios that the calculator proposes will actually happen. This makes long-term planning hard to predict.  It doesn't matter how much you analyze your future spending, more accuracy will not improve precision.  You can't know what your spending will be in 10, 20, or 30 years, which means that you can't make life decisions based on an imagined future. Rather than trying to completely remove uncertainty, make reasonable assumptions to manage that uncertainty. Managing uncertainty is the essence of retirement planning.  A feasible, resilient plan will see you through retirement Once you figure out the basis that you need to live a great life in retirement then you can organize a feasible plan around that great life. Give yourself optionality by making your plan resilient. With your feasible, resilient plan you can use long-term calculations to plan for the short term.  By creating a resilient plan you'll create slack in the system so that you can change your mind as you change over time. Managing uncertainty instead of trying to eliminate it will give you agency and build confidence in your retirement plan. Listen to the answers to all sorts of retirement strategy questions and make sure to listen until the end to hear the riveting interview with Amy Bloom.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN LISTENER QUESTIONS [4:50] Should Jennifer count on an average market in retirement? [13:52] Should I worry about poor investment returns or look for alternatives? [23:42] What about using laddered ETFs rather than a bond ladder? [25:07] On my language usage [26:40] On using a 72T before age 59.5 [30:45] Should Dan continue to hold a life insurance policy if his house is paid off? [35:03] How to leave behind your life story INTERVIEW WITH AMY BLOOM [40:16] Why did Amy choose to share her story? [43:00] When did Amy and Brian approach this topic? [50:25] How to be helpful with a life-changing diagnosis [51:27] On how to approach this situation [54:30] How they navigated the logistics [1:01:26] How did the family react? [1:04:43] What did Amy learn from this experience? TODAY'S SMART SPRINT SEGMENT [1:09:19] Reassess your relationship with the internet and news Resources Mentioned In This Episode LTCI Partners Dignitas BOOK - In Love by Amy Bloom Episode 441 - How to Leave a Lasting Legacy Fidelity Retirement Calculator Fidelity 72T calculator Dan Miller Rock Retirement Club Roger's YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Roger's Retirement Learning Center

There is a little-known part of the IRS tax code that allows you to access your 401(k) or 403(b) prior to 59 and a half without penalty. Traditionally, the penalty is 10%, but the Rule of 55 gives you access without paying a penalty, but it comes with certain requirements. If you leave your job in the calendar year you turn 55 or older for any reason and your employer has stipulated that you have the ability to tap into your plan, you can do so without penalty. Some plans may require you to withdraw your entire balance as one lump sum, which would most certainly be a bad deal. To maximize the Rule of 55, there are a number of roll-over strategies you can use. For example, if you have an old 401(k) or IRA, you can roll those balances into your employer's plans, and then when you separate you will have unfettered access to the total amount between age 55 and 59 and a half. If you have specific circumstances or know that you'll have heavy cash flow needs between those ages, this is a solid, penalty-free option. You have to get all the shifting done before you leave your employer. You won't be able to roll over a balance after you are no longer employed. There are some caveats. You can only withdraw funds from your most recent employer, and you can't make penalty-free withdrawals from your IRA. The Rule of 55 is very specific and only applies to narrow circumstances. People are retiring at younger and younger ages, and if that's the case for you in that period between age 55 and 59 and a half, the Rule of 55 is a great option. You will want to apply Power of Zero principles during those years because if you don't you may bump into a higher tax bracket than you expect or accidentally suffer a 10% penalty. Another reason you may want to take money out of your 401(k) using the Rule of 55 is to take advantage of historically low taxes. You can use the money to fund your lifestyle as well as your Roth IRAs and LIRPs.  A 72T is another viable option for some people, but it comes with artificially low limits that may be an obstacle. The 72T works for a lot of people, it just doesn't work for everybody, particularly those that want to retire early.

I'm today's episode I take a deeper dive into investing concepts including the 72T rule, the rule of 55, Roth conversions, back door Roth's and Donor Advised funds. If this is all a bunch of mumbo jumbo to you give the episode a listen and learn something new!

Co-hosts JR and Eric (safely) reunite in person to present a very cool Crutchfield exclusive — an interview with Bose Distinguished Engineer Dan Gauger. Our headphone expert Jeff chats with Dan about the origins of noise-cancelling headphones, his involvement in 1986's Rutan Voyager flight, what Bose fans can look forward to next, and more. For video extras and photos, check out Jeff's full article (https://www.crutchfield.com/r/72S). Also, JR shares his experience as the proud owner of Bose QuietComfort® Earbuds (https://www.crutchfield.com/r/72T). And for more on the headphone comfort ratings test Eric references in the episode, check out our Top 5 most comfortable over-ear headphones (https://www.crutchfield.com/r/72U).

Scott goes deep on how to access a 403(b)... 02:00 Accessing after age 59.5 09:54 Accessing before age 59.5 but after age 55 15:18 Accessing before age 50 a.k.a. S.E.P.P. a.k.a. 72(t) withdrawal 19:20 Borrowing from a 403(b) 26:03 Disability 27:43 Divorce 33:40 Death Resources:Accessing a 403(b) 457(b) Information The 457(b) Plan Podcast Working with a Financial Professional 403bwise.org Facebook Group  

In this podcast I will answer the question: How can I get money out of my IRA before age 59.5 without a 10% penalty? I would like to start by briefly reviewing the rules of an Individual Retirement Account (IRA): Deposits into an IRA are tax deductible. Right on the front page of your tax return you put in the amount of your contribution and deduct it from your income. When you take money out of your IRA you pay income taxes on that money. If you take it out before you turn 59.5, in general, you need to also pay a 10% penalty. At age 59.5 you can take money out of an IRA without a penalty. At 70.5 you need to start taking money out each year. The amount depends on the balance on 12/31 of the previous year and the life expectancy at that time. For a 71 year old, the life expectancy is 17 years. The distribution would be your balance on 12/31 divided by 17. There are two ways to avoid the 10% penalty and withdraw money from your IRA before turning 59.5: they 72T or if you qualify for a hardship rule. 72T – Penalty Free Early Withdrawals from IRAAn Internal Revenue Service (IRS) rule that allows for penalty-free withdrawals from an Individual Retirement Account (IRA). The rule requires that, in order for the IRA owner to take penalty-free early withdrawals, he or she must take at least five “substantially equal periodic payments” (SEPPs). The amount depends on the IRA owner's life expectancy calculated with various IRS-approved methods. There are three ways that you can determine the amount of the distribution from your IRA, and all three are based upon the balance of the IRA account and your age. The first method is the simplest, known as the Required Minimum Distribution method. The Required Minimum Distribution method for calculating your Series of Substantially Equal Periodic Payments calculates the specific amount that you must withdraw from your IRA (or other retirement plan) each year. The calculation is based upon your account balance at the end of the previous year, divided by the life expectancy factor from one of the following three tables: the Single Life Expectancy table, the Uniform Lifetime table, or Joint Life and Last Survivor Expectancy table, using the age you have reached (or will reach) for that year. This annual amount will be different each year. The second method is called the Fixed Amortization Method. Calculating your annual payment under this method requires you to have the balance of your IRA account, from which you then create an amortization schedule over a specified number of years. The number of years for your calculation is equal to your life expectancy factor from either the Single Life Expectancy table, the Uniform Lifetime table, or the Joint Life and Last Survivor Expectancy table, using the age you have reached (or will reach) for that year. In addition, you will specify a rate of interest of that is not more than 120% of the federal mid-term rate published by regularly the IRS in an Internal Revenue Bulletin (IRB). The third method is similar to the second, called the Fixed Annuitization Method. Calculating your annual payment under this method requires you to have the balance of your IRA account and an annuity factor, which is found in Appendix B of Rev. Ruling 2002-62 using the age you have reached (or will reach) for that year. Again, you'll select a rate of interest of that is not more than 120% of the federal mid-term rate published by regularly the IRS in an Internal Revenue Bulletin (IRB). Rule 72(t) allows you to take advantage of your retirement savings before the age of 59.5, when there is otherwise a 10% penalty on early withdrawal. The withdrawals, however, are still taxed at your income rate. The drawback to taking advantage of Rule 72(t) is that you may deplete your retirement accounts well before the end of your life expectancy. Other Penalty Free Distributions from IRAThere are several ways to take IRA distributions before age 59.

Professor Jamie Hopkins (Carson Wealth & Heider School of Business/Creighton University) talks about impacts the SECURE Act could have on retirement planning - particularly the end of the stretch IRA provision, which allows inherited individual retirement accounts to remain tax-deferred. Plus, how to reduce taxes when you have significant capital gains, when you can take tax-free and penalty-free 457 distributions, and whether or not to max out your 401(k). Transcript & show notes: http://bit.ly/YMYW-224

Toby Mathis and Jeff Webb of Anderson Advisors like to spread tax knowledge to the masses. So, here they go again. Do you have a tax question? Submit it to taxtuesday@andersonadvisors. Highlights/Topics: My parents own two homes and willing one each to me and my sister. What’s the best way to transfer the properties? Transfer inherited appreciated property through will/ trust If I offer a small-term life insurance policy for my employees, will tax benefits outweigh costs? Yes, but tax benefit of deducting premiums won’t equate to premiums you pay What is an accountable plan? How is it formed, described, executed? Plan must be between employer and employee; you account for certain expenses, we reimburse you How would I be taxed, if I get a loan on a 401K to use toward buying real estate investment properties? A loan isn’t a taxable event; you repay the loan through the 401K What’s a DB plan? Defined benefit; defined contribution (DC) defines amount you put in As a sole proprietor, can I write off life insurance premiums as a business expense? You can’t write off insurance premiums unless you're an employee; you don’t get deductions I've invested money into tech startups that have failed. How can I write off these losses? It's capital loss, and you need capital gains to offset it; can deduct up to $3,000 a year Can C Corp losses be applied to a personal 1040? Depends. Losses can be applied, if corp is liquidated, it’s a traditional corp, and 1244 stock election was made Does Anderson Advisors have a favorite app to track mileage? Anderson Advisors doesn’t, but Toby Mathis recommends MileIQ Can I get advice on how to save money from your company? Yes. We're happy to help, just contact us to talk to any of our representatives Can I get the $500 credit for my 17-year-old son? Child tax rate cuts off, if they're 17 at the end of the year If my child earned $11,000 in 2018 and no tax, does he have to file his own tax return? Yes. If you don't have a tax liability, you still have to file a tax return to claim it If my C Corp didn't make money its first year and all the expenses I had were for education, will I end up paying money to the IRS or receive refunds? The corporation would have the $40,000 deduction; it can reimburse $40,000 as a loss, not a deduction How do I structure, if I’m working for another company as a day job? Doesn't matter. You can work for multiple employers and set up your own companies Do I have to hire my wife as an employee to give her a pension? If you want to put money aside for her, she needs to work; you can't just give her a salary for doing nothing Can I invest directly into real estate in an opportunity zone or only in an opportunity zone fund? Put money into the qualified opportunity zone and invest through a qualified opportunity fund via an entity, not individually; you can take capital gains What's the best accounting software to use to run an S Corp? QuickBooks is the most used and people are familiar with it; also have a good bookkeeper I'll be 59 1/2 in March. Can I use my 401K to purchase real estate investments without penalty? How is the tax handled? If you pull money out, it has to be after you're 59 ½, not a day before; you can make a 72T election when you're 55 to spread out contributions For all questions/answers discussed, sign up to be a Platinum member to view the replay! Resources 338 H8 or H10 Election Year-End Tax Planning Schedule C Schedule E Schedule A Form 1120 1244 Stock Election MileIQ 1099 Miscellaneous Form 5500 Securities and Exchange Commission The Private Vault QuickBooks Breaking Bad 72T Election Taxbot 1031 Exchange Anderson Advisors Tax and Asset Protection Event Toby Mathis Anderson Advisors

It’s really nice when we have the chance to speak with candid, forthcoming guests on our show.  This week we interviewed Justin McCurry of the Root of Good blog. Justin has been in the FIRE space, encouraging others with his story for many years.  In this interview, we explored the aspects of Justin’s story that were more specific to our House of FI family. He did such a great job inspiring us both to take action for our families.     Money is The Root of Good   Justin, founder of Root of Good, is a husband and the father of 3 kids, ranging in ages from 6 to 13. Born and raised in North Carolina, he now lives in a modest home with his wife and kids. Justin became financially independent by the age of 33 years old, and immediately retired from his full time work.  On our previous episode, we we spoke to Jackie Cummings Koski, who has also reached FI, but mentioned suffering from “One More Year syndrome”, where she finds herself hesitating on taking the FIRE Leap. This week Justin helped us to learn more about taking that LEAP and what to expect afterwards. Justin has been retired for over 5 years, making his current age 38 years old.   Justin’s Money Story Like some of us, Justin can’t recall a time when he wasn’t saving his money, and wasn’t frugal.  He knew from his first job that the responsible thing to do was to spend less than what he made, and save the difference. His parents were the same. Justin met his now wife while they were in college.  She came to the U.S. to pursue a degree in finance, and also had humble beginnings.  When Justin graduated from college, his first job paid him a salary of $48,000! Since he lived in a low cost of living (LCOL area), he was able to bank anywhere from 1000-1500 a month. He began saving up cash, investing for retirement, and also investing in a brokerage account.  And all of this was before he learned about FIRE! A Defining Moment At some point, Justin, dating a finance major and majoring in engineering, was playing with some spreadsheets.  He realized that he paid thousands of dollars in investment fees - he was actually paying more in fees than what he saved in two months combined! He begin searching for an alternative, and decided he needed to switch to a DIY approach. During the transition he learned about early retirement, and also about the ways to remove retirement money well before retirement.  In the episode we discuss the 72T rule and the Roth Conversion ladder. We also talk about his reasoning for using a 3.5% withdrawal rate for his portfolio and about his family’s decision to pay off their mortgage early. Family Time as a Limited Resource Justin and his wife are now both retired, which allows them to have time together during the day, and allows them to be involved in their kids’ school lives. So, obviously we wanted to know what Justin’s kids think about the benefit of having two parents at home full-time?  And also, how awesome is it that they get to slow travel every summer?   For some of us, having a million dollars would be the catalyst needed to spend quality time at home with our children (totally Wendy).  For others, having a million dollars would lead to exploring more options outside the house (totally me). Justin’s perspective on this privilege was insightful, no matter what we will choose to do when we reach financial independence!    How Does Justin Teach His Kids About Money Justin and his wife use a method for teaching their children about money that is very unique.  They support the method of letting the kids have some autonomy on how they spend their money, which he says gives them a chance to make early mistakes on smaller sums.   Listen to find out what happened when his some purchased and then lost a smart phone merely months after buying it!     Listen to the episode to hear more about: Health Care Options in Early Retirement Completing a Cost benefit Analysis before pulling the retirement trigger  How to assess your spending when it comes to houses and cars How to find free resources so that you can learn what you need to know to DIY your finances   Justin on the final questions: Lesson:  Focusing on investment costs was a big one i had to learn the hard way.  Getting rid of him and going and doing it myself saved me thousands of dollars. Credit card travel hacking - it’s like beating the casino and we love to travel. Most of the reading is general leisure reading.  Right now he is reading Cruise Confidential, a non-fiction book about a waiter's daily experiences while working in the belly of the cruise ship. How exciting! :-) And, why not include part 2!  Once I read the juicy title, I knew it needed a spot in our show notes! haha...   Bonus Resources From Justin: Zero to Millionaire in Ten Years     How we paid almost zero taxes on a six figure income     What we do for health insurance / Affordable Care Act Subsidies     Our $40,000 per year Early Retirement Budget (for a family of 5!)    Roth IRA Conversion Ladder (how we access our 401k/IRA decades before age 59.5 without paying any early withdrawal penalties)     Listen to Last Week's Episode: Health Savings Accounts

How much do you know about the individual retirement account, also known as an IRA? In today's podcast, the basics: contributing to an IRA, SEP IRAs and SIMPLE IRAs for small business owners, self-directed IRAs, and IRA mistakes to avoid. Plus, Joe and Big Al answer your questions - like what's the return on an IRA? Why is owning real estate in an IRA a terrible idea? Transcript & show notes: http://bit.ly/YMYW-189

7 Steps to Retire in 10 Years, 5 Key Retirement Questions You Need To Answer When You’re 50 Or Older, 10 Frequently Asked IRA questions, and some questions answered, like, "The estate is in probate and the accounts are frozen, now what?" and, "Where should you invest any extra money you have left over each month?" (Oh, and Joe and Big Al bicker like they've been married for years!) Transcript and show notes at http://bit.ly/YMYW-177

When I started recording the show, I planned to answer six questions. But, after finishing the first question and realizing how in-depth the show would be if I covered all six in one show, I decided to break it out into multiple shows. Today, I cover these two questions: 8:41-I'm thinking about buying life insurance on my two kids' lives. What do I need to know? 47:53-Will it work for me to use the 72(t) rules to retire at 50 and then change the payment terms at 59.5? Notes-Life insurance for kids: This is one of the most controversial areas in finanancial planning so I'll try to fairly represent the various points of view. It's tough to have a low-key discussion here because it's such an emotionally intense subject. There are three major philosophies that I've discovered: Buy lots of life insurance to protect your investment in your kids. Few people in the US will go for this one; much of the world will understand it though. The reality is more and more of us will in fact be depending on our kids as we age due to many factors including the amount of savings most retirees have and financial challenges facing social security and medicare. Buy just the minimum amount of insurance to cover burial costs. The problem here is that the rich and middle class don't really need it and the poor often don't think of it and can hardly afford it. It's also simply not very high as a priority due to the relatively low risk. Consider this model: http://radicalpersonalfinance.com/do-i-need-insurance-a-mental-model-to-analyze-methods-of-dealing-with-risk-rpf0091/ Buy some insurance for now and as a hedge for the future. Hedge for the future with an Additional Purchase Benefit. How to actually buy the policy? The advice is conflicting. People say to buy term policies for kids. But I've never been able to find a company that will sell a stand alone term product on a minor's life. (Let me know if you know of one, please.) If you're buying a big policy (#1 above) and your child is over 18, it's easy. Buy an Annual Renewable Term policy for them. If you're buying a big policy (#1 above) and your child is under 18, it's harder. If you want to get closer to term coverage, consider a stripped-out universal life policy. If you have the cash flow, go with a traditional whole life insurance contract. Make sure it's a contract that your kid will be happy owning forever. Shop carefully. If you're buying a simple burial policy (#2), do it as a term rider on another policy. You can get these at work, bundled with a banking or property and casualty insurance product, or as a rider on your own term policy. If you're hedging now and later (#3), buy a small whole life policy with an Additional Purchase Benefit. That way as health, hobbies, and occupations change, your child will be able to buy more insurance if necessary. Shop carefully. Notes-72(t) Calculations Use this calculator to get an indication of the numbers: http://www.dinkytown.net/java/Retire72T.html IRS info: http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Substantially-Equal-Periodic-Payments

We have a really fun question from a listener today! Essentially, it’s this: I’m 35 and I don’t like my job…I have a $1,000,000 and I want to retire but no one can agree on whether I can or not! Tune in to hear my answer–it’s probably not what you think! Links: The original Trinity […]